EnteroMedics Prices Underwritten Public Offering

EnteroMedics a medical device company, has priced an underwritten public offering of units for gross proceeds of $20 million. Shares of EnteroMedics have tumbled 35% in pre-market trading.

The offering consists of units, priced at $1,000 per unit, comprised of one share of series B convertible preferred stock, which is convertible into 435 shares of common stock at a conversion price of $2.30 per share, and one seven-year warrant to purchase 435 shares of common stock, at an exercise price of $2.30 per share. The company said it will use the net proceeds from the offering to continue its commercialization efforts, for clinical and product development activities, and for other working capital and general corporate purposes.

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